Some of the idle equipment at Arda’s Balu Estate in Umguza
Oliver Kazunga Senior Business Reporter
A JOINT-VENTURE tomato and fruit processing investment between Schweppes Zimbabwe and the Agricultural and Rural Development Authority (Arda) is targeting to create at least 3,000 direct and indirect jobs.
About 300 farmers are already benefiting from an out-grower programme at the Norton-based Best Fruit processors plant while additional jobs are also expected when the two firms open their tomato canning plant in Esigodini in the next two months.
The Esigodini plant is set for commissioning in July following the relocation of the equipment that had been lying idle for over two decades at Arda Balu Estate in Umguza District, Matabeleland North Province. Arda board chairman Basil Nyabadza is on record saying about 80 percent of the equipment required for the plant has already been transferred to Esigodini while focus now is on assembling the factory.
Schweppes Zimbabwe marketing and public affairs director Unaiswi Nyikadzino said the fruit processing plant was focused on fulfilling domestic demand for tomato paste and fruit purees while supplying the export market.
“The business’ key focus is to fulfil domestic demand for tomato paste and fruit purees whilst supplying export markets. The targeted contributions for 2016 are 70 percent exports and 30 percent domestic business in volume terms,” said Nyikadzino in a statement.
“The BFP product portfolio is focused on tomato paste, which is expected to contribute about 50 percent of the total volume produced.
“Currently, most tomato paste utilised by domestic and regional manufacturers is imported from China. Further to creating a sustainable export market for processed fruit, Best Fruit Processors will simultaneously create additional economic value through the creation of about 100 jobs from direct employment and 3,000 indirect jobs as famers will be signed up for the out-grower programme.”
The fruit processor’s business model has a heavy reliance on the farming community’s ability to invest in the production of the relevant fruit at a reasonable price and at the right quality.
In this light, smart public-private partnerships are a key feature of the business model.
Since January the firm has collected fruit from more than 700 farmers across the country from the following areas – Mhondoro-Ngezi, Murombedzi, Honde Valley, Hwedza, Lower Gweru, Chigodora, Macheke, Mamina, Goromonzi, Selous and Domboshawa.
“The business model for contract-growing for fruit is based on a healthy mix of community irrigation schemes, small holder farmers as well as a few commercial farmers,” said Nyikadzino.
Best Fruit Processors’ plant has an annual production capacity of 30,000 tonnes of raw fruit, which is processed into purees and pastes.
“Production capacity is 10 tonnes raw fruit per hour. We started the processing machines on 31st December 2015 with a commissioning production run for mango and guavas into purees and have started receiving tomatoes, which we’re processing into tomato paste,” she added.
The company’s general manager Smart Zongololo said: “Raw fruits that have gone into the plant this year to date amount to 100 tonnes mango, 257 tonnes guava and 30 tonnes tomatoes”.
The fruits were procured with a combined value of $300,000.
The company’s target procurement to be spent on feedstock from farmers for the full year 2016 is about $2 million and likely to increase to $5 million in 2017.